Pace of real estate sales cools with the weather
Edmonton, November 2, 2006: As usual at this time of year, the pace of real estate sales has cooled according to the Edmonton Real Estate Board. Average prices* for single family dwellings inched up in October while condo prices dropped slightly from the previous month. As a result the average residential price dropped 0.75 percent to $276,641.
More homes were sold in October than September even though listings were down 10%. “It appears that housing prices have stabilized for the time being,” said Madeline Sarafinchan, EREB President. “The inventory remains below historic levels which means that residential pricing is still competitive. Buyers and sellers should work closely with their REALTOR® to establish an effective pricing strategy based on the most recent neighbourhood and market trends.”
The average price for a single family dwelling on the Edmonton MLS® in October was $326,292, up 1.3% from last month. Condo prices were down 1.6% from September and sold on average for $208,962. Duplexes and rowhouses sold on average for $282,551 (up 1.26%).
At the end of October there were 2,555 residential properties available as compared to 3,806 last October. The average days-on-market was 23 days; the same as last month but down from 42 a year ago. There were 1,890 residential sales in October – a slight increase from the one month sales in September (1,844).
Despite the snow, reminders of the scorching summer linger in the total number of sales. Year-to-date residential sales have already exceeded the 2005 year end total sales by 1,333 units with two months still to go this year.
“After the frantic pace of the past year the market is regaining balance,” said Sarafinchan. “Panic buying is reduced and buyers have a little more time to consider a home purchase. At the same time sellers are pleased with the relatively fast turnover of good looking, well-priced property.”
The number of homes selling below their list price is another indicator of the market rebalancing. In October, 65% of single family dwellings sold below their list price. They sold on average in 33 days. Houses which sold over their list price were on the market for just 16 or 17 days on average and represent just 19% of single family dwellings sold. Sarafinchan noted that the number of sales attracting multiple offers seems to be down although no exact figures are available.
The strength of the Alberta economy is also reflected in commercial sales. The number of commercial properties sold through the Board is up 12.5% for the year. Apartment sales are up from 44 to 94 properties (YTD through October) and land sales are up from 90 to 132. Sales of investment property and leases also show growth this year. Total value of commercial property sold to date is up 68% to a total of $247 million.The total value of commercial land sold so far this year is over $50 million as compared to $39 million in 2004.
Thursday, October 19, 2006
New mortgage insurer enters Canadian market
AIG CEO suggests 50-year mortgages on the way
AIG United Guaranty became the third company to provide mortgage insurance in Canada in mid-October. Canada Mortgage and Housing Corp. currently handles 70 per cent of the mortgage insurance market in Canada, while private insurer Genworth Financial Canada covers the remaining 30 per cent. Two additional companies are expected to enter the market in 2007.
“We have seen significant activity in the Canadian mortgage insurance industry over the past six months in anticipation of increased competition,” said AIG United Guaranty President and CEO Andy Charles.
Included in AIG United Guaranty's current product offering is insurance for no down payment mortgages, and a “more affordable” insurance product for borrowers whose credit scores have been affected by adverse conditions.
Investors with a 10 per cent down payment will be able to get insurance on rental properties of one to four units. The company is also offering products with 30, 35 and 40-year amortization periods, as well as identity theft insurance coverage.
Charles predicted in an interview that 50-year amortization periods for mortgages would be offered in the Canadian marketplace. He added that AIG United Guaranty has no immediate plans to insure mortgages amortized over 50 years.
A recent report by CIBC World Markets shows that Canada's sub-prime mortgage sector increased by 50 per cent during the first half of 2006, and grew by almost five times the rate of traditional lending. CREA cautions that the report did not provide the actual number of sub-prime mortgages used to generate the statistics.
Sub-prime or "non-conforming" mortgages are often assumed to be inherently riskier than more traditional forms of borrowing. Lenders provide home loans to new immigrants who don't have a Canadian credit history, mortgages for the self-employed who can't easily prove their income, or loans for people who have a bad credit rating. Borrowers are often offered longer repayment periods or lower down payment options, and pay higher rates of interest.
AIG CEO suggests 50-year mortgages on the way
AIG United Guaranty became the third company to provide mortgage insurance in Canada in mid-October. Canada Mortgage and Housing Corp. currently handles 70 per cent of the mortgage insurance market in Canada, while private insurer Genworth Financial Canada covers the remaining 30 per cent. Two additional companies are expected to enter the market in 2007.
“We have seen significant activity in the Canadian mortgage insurance industry over the past six months in anticipation of increased competition,” said AIG United Guaranty President and CEO Andy Charles.
Included in AIG United Guaranty's current product offering is insurance for no down payment mortgages, and a “more affordable” insurance product for borrowers whose credit scores have been affected by adverse conditions.
Investors with a 10 per cent down payment will be able to get insurance on rental properties of one to four units. The company is also offering products with 30, 35 and 40-year amortization periods, as well as identity theft insurance coverage.
Charles predicted in an interview that 50-year amortization periods for mortgages would be offered in the Canadian marketplace. He added that AIG United Guaranty has no immediate plans to insure mortgages amortized over 50 years.
A recent report by CIBC World Markets shows that Canada's sub-prime mortgage sector increased by 50 per cent during the first half of 2006, and grew by almost five times the rate of traditional lending. CREA cautions that the report did not provide the actual number of sub-prime mortgages used to generate the statistics.
Sub-prime or "non-conforming" mortgages are often assumed to be inherently riskier than more traditional forms of borrowing. Lenders provide home loans to new immigrants who don't have a Canadian credit history, mortgages for the self-employed who can't easily prove their income, or loans for people who have a bad credit rating. Borrowers are often offered longer repayment periods or lower down payment options, and pay higher rates of interest.
Thursday, September 14, 2006
Edmonton housing prices continue upward climb
Prices of Edmonton real estate continued their steady climb after a brief respite in July. The average residential selling price rose 5.56 percent in August after a less than one percent increase in July. The average* price for a single family dwelling climbed 4.34 percent last month and condos breached the $200,000 barrier for the first time in Edmonton.
According to the Multiple Listing Service®, the average price for single family dwellings in August was $316,480. Average condominium prices went up 6.3% in a month to $200,644 in August. Duplexes and townhouses sold for $262,327 on average – an increase of 14.7% from last month.
“Despite price increases, we have experienced a record number of sales each month this year,” said Madeline Sarafinchan, EREB President. “This proves that homes in Edmonton are still affordable and available for most buyers.” Along with a record number of residential sales in August, listings on the MLS® were up 19% from last month and the inventory of available properties on MLS® rose from 1,856 in July to 2,138 (up 15%) in August. “Indications are that the market is cooling slightly and sales will not be as torrid as they have been so far this year,” she said.
August sales have increased each year and this year’s sales of 2,079 residential properties in August set a new record for the month. The sales numbers for categories of single family dwellings, condos and duplexes also broke existing records. Record sales combined with record prices have driven total MLS® volumes to new heights. Total MLS® volume so far this year is $4.43 billion which exceeds the 2005 year-end volume of $4.25 billion. Total residential unit sales are at 83% of last year’s sales even before the end of the third quarter.
“Edmonton is unique in North America right now,” says Sarafinchan. “Housing has been undervalued and we are catching up to prices in other major centres. We seem to have broken through a psychological barrier and buyers are beginning to accept the pricing realities that we have witnessed in other centres.
Prices of Edmonton real estate continued their steady climb after a brief respite in July. The average residential selling price rose 5.56 percent in August after a less than one percent increase in July. The average* price for a single family dwelling climbed 4.34 percent last month and condos breached the $200,000 barrier for the first time in Edmonton.
According to the Multiple Listing Service®, the average price for single family dwellings in August was $316,480. Average condominium prices went up 6.3% in a month to $200,644 in August. Duplexes and townhouses sold for $262,327 on average – an increase of 14.7% from last month.
“Despite price increases, we have experienced a record number of sales each month this year,” said Madeline Sarafinchan, EREB President. “This proves that homes in Edmonton are still affordable and available for most buyers.” Along with a record number of residential sales in August, listings on the MLS® were up 19% from last month and the inventory of available properties on MLS® rose from 1,856 in July to 2,138 (up 15%) in August. “Indications are that the market is cooling slightly and sales will not be as torrid as they have been so far this year,” she said.
August sales have increased each year and this year’s sales of 2,079 residential properties in August set a new record for the month. The sales numbers for categories of single family dwellings, condos and duplexes also broke existing records. Record sales combined with record prices have driven total MLS® volumes to new heights. Total MLS® volume so far this year is $4.43 billion which exceeds the 2005 year-end volume of $4.25 billion. Total residential unit sales are at 83% of last year’s sales even before the end of the third quarter.
“Edmonton is unique in North America right now,” says Sarafinchan. “Housing has been undervalued and we are catching up to prices in other major centres. We seem to have broken through a psychological barrier and buyers are beginning to accept the pricing realities that we have witnessed in other centres.
Friday, September 01, 2006
New home price rise fastest since 1989
Financial Post, August 11, 2006
Canadian new-home prices rose at their fastest pace since 1989 in June, led by Alberta, where an energy boom has led to a housing shortage. New home prices jumped 1.4% during the month and have gained 9.8% in the 12 months ended in June, Statistics Canada said. Prices in Calgary jumped 49%. The shortage of equipment, staff and homes in Alberta has fuelled consumer prices and helped push the annual inflation above the Bank of Canada’s 2% target for seven consecutive months. The central bank paused last month after raising the benchmark lending rate seven times since September, and indicated it may not need to raise rates again this year. “These numbers are definitely going to get the banks attention,” Andrew Pyle, an economist with Scotia Capital in Toronto, said. Still, rising home prices won’t be enough to change the central bank’s thinking on keeping the main interest rates at the current level of 4.25% he said.
Financial Post, August 11, 2006
Canadian new-home prices rose at their fastest pace since 1989 in June, led by Alberta, where an energy boom has led to a housing shortage. New home prices jumped 1.4% during the month and have gained 9.8% in the 12 months ended in June, Statistics Canada said. Prices in Calgary jumped 49%. The shortage of equipment, staff and homes in Alberta has fuelled consumer prices and helped push the annual inflation above the Bank of Canada’s 2% target for seven consecutive months. The central bank paused last month after raising the benchmark lending rate seven times since September, and indicated it may not need to raise rates again this year. “These numbers are definitely going to get the banks attention,” Andrew Pyle, an economist with Scotia Capital in Toronto, said. Still, rising home prices won’t be enough to change the central bank’s thinking on keeping the main interest rates at the current level of 4.25% he said.
Thursday, August 03, 2006
NOT TOO LATE : DO EVERYTHING HUMANLY POSSIBLE TO GET INTO THE MARKET!
STILL BEST INVESTMENT FOR MANY - DAVID BACH
With Canada's real-estate boom not expected to go bust for the foreseeable future, a personal-wealth expert and bestselling author is recommending that prospective homebuyers do "everything humanly possible to get into the market."
Despite skyrocketing prices across most of the country, real estate is still the best investment many of us will make, said David Bach, author of The Automatic Millionaire Homeowner.
STILL BEST INVESTMENT FOR MANY - DAVID BACH
With Canada's real-estate boom not expected to go bust for the foreseeable future, a personal-wealth expert and bestselling author is recommending that prospective homebuyers do "everything humanly possible to get into the market."
Despite skyrocketing prices across most of the country, real estate is still the best investment many of us will make, said David Bach, author of The Automatic Millionaire Homeowner.
"It's an acknowledged fact that renters have an average net worth of less than $2,000 while homeowners on average have a net worth exceeding $140,000. So it's imperative that people seeking to increase their net worth get into the real-estate market," said Bach.
"Even in the Toronto market, where prices have skyrocketed in recent years, it's possible to get in if you consider making a 25- to 30-minute commute from where prices are more affordable."
For the vast majority of people, their home is the largest asset they will ever invest in and it's become a huge part of their retirement nest egg, with many retiring off the equity in their home by downsizing. Bach, who is also an adviser to Scotiabank on financial issues and trends, warns, however, that real estate is not a riskless transaction, and "location has much to do with that. There's been a huge appreciation in real-estate values in Vancouver, Toronto, Edmonton and Calgary, but that isn't true everywhere."
Bach said the biggest myth about buying real estate is that "you need a large down payment, where in actual fact you can get in with five per cent down or even less.
"And it's relatively painless to save for a down payment if you feel more comfortable with one. I call it the latte factor. Just think about the small items you buy every day without thinking -- lattes, muffins or lunch -- and imagine how much you could save if you cut some of them out. Within two years, that could be a $10,000 down payment to get you started."
Bach said there's unlimited interest in the real-estate market because, "unlike the stock market, real estate is something you get to enjoy and live in."
ScotiaBank senior economist Adrienne Warren said she believes that high prices can be sustained in the long term. "Stable interest rates are seemingly here to stay, and that attracts long-term housing investment," said Warren. "And our strong dollar versus most other currencies is attracting more foreign investment from those who see Canada as a very affordable market."
© The Vancouver Province 2006
Thursday, July 20, 2006
MORTGAGE RATES UPDATED
With access to over 30 competing banks, trust and life insurance companies, Dave Trithart can find the right combination of mortgage features, options and rates to meet your needs. You’ll get the best mortgage rate possible for the type of mortgage that meets your needs.
TM Trademark of Mortgage Intelligence Inc. ® Registered trademark of Mortgage Intelligence Inc. A GMAC Company
MORTGAGE RATES
TERM - MARKET RATE* - BEST RATE†
6 month 6.40% 5.75%
1 year closed 6.55% 5.25%
2 year closed 6.65% 5.35%
3 year closed 6.75% 5.45%
4 year closed 6.80% 5.45%
5 year closed 6.95% 5.50%
6 year closed 7.05% 5.70%
7 year closed 7.10% 5.60%
10 year closed 7.55% 5.75%
Call today and ask about an Adjustable Rate Mortgage at a rate today of 5.15% !!!!
Bank Prime Lending Rate is currently 6.00%.
Market rate is the posted rate offered by the majority of Canadian financial insitutions. E&OE† OAC. Certain conditions may apply. Rate subject to borrower, property qualification and can change without notice.Mortgage Intelligence is Canada’s largest and fastest growing mortgage brokerage firm and a subsidiary of GMAC Residential Funding of Canada.For more information on any of these mortgage terms or how Dave can arrange a financing package to suit your individual needs, please contact Dave Trithart @ 440-9313 Ext-306.
With access to over 30 competing banks, trust and life insurance companies, Dave Trithart can find the right combination of mortgage features, options and rates to meet your needs. You’ll get the best mortgage rate possible for the type of mortgage that meets your needs.
TM Trademark of Mortgage Intelligence Inc. ® Registered trademark of Mortgage Intelligence Inc. A GMAC Company
MORTGAGE RATES
TERM - MARKET RATE* - BEST RATE†
6 month 6.40% 5.75%
1 year closed 6.55% 5.25%
2 year closed 6.65% 5.35%
3 year closed 6.75% 5.45%
4 year closed 6.80% 5.45%
5 year closed 6.95% 5.50%
6 year closed 7.05% 5.70%
7 year closed 7.10% 5.60%
10 year closed 7.55% 5.75%
Call today and ask about an Adjustable Rate Mortgage at a rate today of 5.15% !!!!
Bank Prime Lending Rate is currently 6.00%.
Market rate is the posted rate offered by the majority of Canadian financial insitutions. E&OE† OAC. Certain conditions may apply. Rate subject to borrower, property qualification and can change without notice.Mortgage Intelligence is Canada’s largest and fastest growing mortgage brokerage firm and a subsidiary of GMAC Residential Funding of Canada.For more information on any of these mortgage terms or how Dave can arrange a financing package to suit your individual needs, please contact Dave Trithart @ 440-9313 Ext-306.
Tuesday, July 11, 2006
NEW HOME CONSTRUCTION MAINTAINS SIZZLING PACE
Edmonton - According to preliminary fugures released today by Canada Mortgage and Housing Corporation (CMHC), total residential housing starts across the capital region acheived their best June performance on record. Total housing starts across the Capital region achived their best june performance on record. Total housing starts in the Edmonton Census Metropolitan Area (CMA) increased 31 percent from 1,183 units in June 2005 to 1,547 units in June 2006. Six months into the year, total new home construction is 14 per cent ahead of activity reported during the first half of 2005.
To read the rest of this article from CMHC please Click Here.
Edmonton - According to preliminary fugures released today by Canada Mortgage and Housing Corporation (CMHC), total residential housing starts across the capital region acheived their best June performance on record. Total housing starts across the Capital region achived their best june performance on record. Total housing starts in the Edmonton Census Metropolitan Area (CMA) increased 31 percent from 1,183 units in June 2005 to 1,547 units in June 2006. Six months into the year, total new home construction is 14 per cent ahead of activity reported during the first half of 2005.
To read the rest of this article from CMHC please Click Here.
Tuesday, June 27, 2006
MORTGAGE RATES UPDATED
With access to over 30 competing banks, trust and life insurance companies, Dave Trithart can find the right combination of mortgage features, options and rates to meet your needs. You’ll get the best mortgage rate possible for the type of mortgage that meets your needs.
TM Trademark of Mortgage Intelligence Inc. ® Registered trademark of Mortgage Intelligence Inc. A GMAC Company
MORTGAGE RATES
TERM - MARKET RATE* - BEST RATE†
6 month - 6.40% - 5.75%
1 year closed - 6.55% - 5.25%
2 year closed - 6.65% - 5.35%
3 year closed - 6.75% - 5.45%
4 year closed - 6.80% - 5.45%
5 year closed - 6.95% - 5.50%
6 year closed - 7.05% - 5.70%
7 year closed - 7.10% - 5.60%
10 year closed - 7.55% - 5.75%
Call today and ask about an Adjustable Rate Mortgage at a rate today of 5.15% !!!!
Bank Prime Lending Rate is currently 6.00%.
Rates Effective June 26, 2006 and subject to change.
* Market rate is the posted rate offered by the majority of Canadian financial insitutions. E&OE† OAC. Certain conditions may apply. Rate subject to borrower, property qualification and can change without notice.
Mortgage Intelligence is Canada’s largest and fastest growing mortgage brokerage firm and a subsidiary of GMAC Residential Funding of Canada.For more information on any of these mortgage terms or how Dave can arrange a financing package to suit your individual needs, please contact Dave Trithart @ 440-9313 Ext-306.
With access to over 30 competing banks, trust and life insurance companies, Dave Trithart can find the right combination of mortgage features, options and rates to meet your needs. You’ll get the best mortgage rate possible for the type of mortgage that meets your needs.
TM Trademark of Mortgage Intelligence Inc. ® Registered trademark of Mortgage Intelligence Inc. A GMAC Company
MORTGAGE RATES
TERM - MARKET RATE* - BEST RATE†
6 month - 6.40% - 5.75%
1 year closed - 6.55% - 5.25%
2 year closed - 6.65% - 5.35%
3 year closed - 6.75% - 5.45%
4 year closed - 6.80% - 5.45%
5 year closed - 6.95% - 5.50%
6 year closed - 7.05% - 5.70%
7 year closed - 7.10% - 5.60%
10 year closed - 7.55% - 5.75%
Call today and ask about an Adjustable Rate Mortgage at a rate today of 5.15% !!!!
Bank Prime Lending Rate is currently 6.00%.
Rates Effective June 26, 2006 and subject to change.
* Market rate is the posted rate offered by the majority of Canadian financial insitutions. E&OE† OAC. Certain conditions may apply. Rate subject to borrower, property qualification and can change without notice.
Mortgage Intelligence is Canada’s largest and fastest growing mortgage brokerage firm and a subsidiary of GMAC Residential Funding of Canada.For more information on any of these mortgage terms or how Dave can arrange a financing package to suit your individual needs, please contact Dave Trithart @ 440-9313 Ext-306.
Wednesday, June 21, 2006
Mortgage to have 40-year amortization
Offering will not be insured
Wells Fargo & Co. is launching a new mortgage product with a 40-year amortization period – the first of its kind for Canadians. The offering will not be insured, however, suggesting the rate could be higher than typical mortgages.
Longer-term amortizations mean monthly payments are lower, giving younger people, or those with poor credit histories a way to purchase a house that otherwise they couldn't afford. But it also means people can end up paying thousands of dollars more in interest, and can be faced with payments long after they retire.
"People who can't afford a house at 25 years maybe shouldn't be jumping in at 40 years," said Benjamin Tal, senior economist at CIBC World Markets. "They're basically shifting the risk, but they're also carrying longer mortgages and are more vulnerable to economic shocks."
Taking a mortgage worth $300,000, an interest rate of 6.5% and a 25-year term, the monthly payment is $2,009.48, while the total interest paid over the entire term is $302,914.
If the rate and mortgage value are kept the same and the amortization period is 40 years, the monthly payment falls to $1,737.96. But the total interest paid jumps to $534,413.
For years, the longest amortization period available to Canadians was 25 years.
But in March, the Canada Mortgage and Housing Corporation said it would insure 30-year terms, and Genworth Financial Canada said it would insure 35-year terms.
When a loan isn't insured, such as the Wells Fargo one will be offering, the lender usually charges a default insurance premium, which is factored into the rate. The company already offers a similar product in the United States.
Offering will not be insured
Wells Fargo & Co. is launching a new mortgage product with a 40-year amortization period – the first of its kind for Canadians. The offering will not be insured, however, suggesting the rate could be higher than typical mortgages.
Longer-term amortizations mean monthly payments are lower, giving younger people, or those with poor credit histories a way to purchase a house that otherwise they couldn't afford. But it also means people can end up paying thousands of dollars more in interest, and can be faced with payments long after they retire.
"People who can't afford a house at 25 years maybe shouldn't be jumping in at 40 years," said Benjamin Tal, senior economist at CIBC World Markets. "They're basically shifting the risk, but they're also carrying longer mortgages and are more vulnerable to economic shocks."
Taking a mortgage worth $300,000, an interest rate of 6.5% and a 25-year term, the monthly payment is $2,009.48, while the total interest paid over the entire term is $302,914.
If the rate and mortgage value are kept the same and the amortization period is 40 years, the monthly payment falls to $1,737.96. But the total interest paid jumps to $534,413.
For years, the longest amortization period available to Canadians was 25 years.
But in March, the Canada Mortgage and Housing Corporation said it would insure 30-year terms, and Genworth Financial Canada said it would insure 35-year terms.
When a loan isn't insured, such as the Wells Fargo one will be offering, the lender usually charges a default insurance premium, which is factored into the rate. The company already offers a similar product in the United States.
Saturday, June 10, 2006
Current Mortgage Rates
With access to over 30 competing banks, trust and life insurance companies, Dave Trithart can find the right combinationof mortgage features, options and rates to meet your needs. You’ll get the best mortgage rate possible for the typeof mortgage that meets your needs.
TM Trademark of Mortgage Intelligence Inc. ® Registered trademark of Mortgage Intelligence Inc. A GMAC Company
MORTGAGE RATES
TERM - MARKET RATE* - BEST RATE†
6 month - 6.10% - 5.60%
1 year closed - 6.25% - 5.15%
2 year closed - 6.35% - 5.25%
3 year closed - 6.45% - 5.30%
4 year closed - 6.55% - 5.30%
5 year closed - 6.75% - 5.30%
6 year closed - 6.55% - 5.50%
7 year closed - 7.15% - 5.40%
10 year closed - 7.35% - 5.55%
Call today and ask about an Adjustable Rate Mortgage at a rate today of 5.15% !!!!
Bank Prime Lending Rate is currently 6.00%.
Rates Effective June 1, 2006 and subject to change.
* Market rate is the posted rate offered by the majority of Canadian financial insitutions. E&OE
We'd like to thank Dave Trithart of Mortgage Intelligence for providing this update.For more details please call him at (780) 440-9313
With access to over 30 competing banks, trust and life insurance companies, Dave Trithart can find the right combinationof mortgage features, options and rates to meet your needs. You’ll get the best mortgage rate possible for the typeof mortgage that meets your needs.
TM Trademark of Mortgage Intelligence Inc. ® Registered trademark of Mortgage Intelligence Inc. A GMAC Company
MORTGAGE RATES
TERM - MARKET RATE* - BEST RATE†
6 month - 6.10% - 5.60%
1 year closed - 6.25% - 5.15%
2 year closed - 6.35% - 5.25%
3 year closed - 6.45% - 5.30%
4 year closed - 6.55% - 5.30%
5 year closed - 6.75% - 5.30%
6 year closed - 6.55% - 5.50%
7 year closed - 7.15% - 5.40%
10 year closed - 7.35% - 5.55%
Call today and ask about an Adjustable Rate Mortgage at a rate today of 5.15% !!!!
Bank Prime Lending Rate is currently 6.00%.
Rates Effective June 1, 2006 and subject to change.
* Market rate is the posted rate offered by the majority of Canadian financial insitutions. E&OE
We'd like to thank Dave Trithart of Mortgage Intelligence for providing this update.For more details please call him at (780) 440-9313
Single month property sales top previous record by 22%
Edmonton: REALTORS® are riding the crest of a real estate wave as the market continues to shatter previous records. Property sales through the Edmonton Real Estate Board Multiple Listing Service® (MLS®) set a new single month record. In June 2005 the bar was set at 2,448 properties sold in a month. May 2006 sales totalled 3,002 properties: a 22.6% increase.
“Record sales are causing our housing inventory to turn over faster than ever,” said Madeline Sarafinchan, EREB President. “Like many manufacturers, REALTORS® are adopting new ‘just-in-time’ inventory techniques. Computer software provided by the Board, and available only to REALTORS®, can advise clients about a property that meets their needs within minutes of it coming onto the market.” Up to 180 homes are listed on the MLS® each day and new listing advisories are broadcast every 15 minutes.
“REALTORS® found homes for over 2,500 families last month and they continue to meet the demand despite the urgency of this market,” said Sarafinchan. At the end of May there were just 1,857 residential properties in the MLS® inventory and properties sold on average in just 20 days (down from 46 days last May).
The average price* for single family dwellings in May rose to $282,208: a 6.27% increase from April. Condo prices were up 6.14% to $172,553. Duplex and rowhouse prices were up from $221,941 last month to $225,624 in May.
Average residential prices in the Edmonton area are up 23% from this time last year. “Other markets in Canada may be less dynamic,” said Sarafinchan. “But properties come available in all parts of the region and are still reasonably priced compared to other major centres in Canada and Alberta. If I have one piece of advice to give, it’s stay in close touch with your REALTOR® to ensure that you get the best assistance and most up-to-the-minute market information.”
* Average prices indicate market trends only. They do not reflect actual prices, which vary from house to house and area to area. For information on a specific area, contact Shami Sandhu.
Edmonton: REALTORS® are riding the crest of a real estate wave as the market continues to shatter previous records. Property sales through the Edmonton Real Estate Board Multiple Listing Service® (MLS®) set a new single month record. In June 2005 the bar was set at 2,448 properties sold in a month. May 2006 sales totalled 3,002 properties: a 22.6% increase.
“Record sales are causing our housing inventory to turn over faster than ever,” said Madeline Sarafinchan, EREB President. “Like many manufacturers, REALTORS® are adopting new ‘just-in-time’ inventory techniques. Computer software provided by the Board, and available only to REALTORS®, can advise clients about a property that meets their needs within minutes of it coming onto the market.” Up to 180 homes are listed on the MLS® each day and new listing advisories are broadcast every 15 minutes.
“REALTORS® found homes for over 2,500 families last month and they continue to meet the demand despite the urgency of this market,” said Sarafinchan. At the end of May there were just 1,857 residential properties in the MLS® inventory and properties sold on average in just 20 days (down from 46 days last May).
The average price* for single family dwellings in May rose to $282,208: a 6.27% increase from April. Condo prices were up 6.14% to $172,553. Duplex and rowhouse prices were up from $221,941 last month to $225,624 in May.
Average residential prices in the Edmonton area are up 23% from this time last year. “Other markets in Canada may be less dynamic,” said Sarafinchan. “But properties come available in all parts of the region and are still reasonably priced compared to other major centres in Canada and Alberta. If I have one piece of advice to give, it’s stay in close touch with your REALTOR® to ensure that you get the best assistance and most up-to-the-minute market information.”
* Average prices indicate market trends only. They do not reflect actual prices, which vary from house to house and area to area. For information on a specific area, contact Shami Sandhu.
Saturday, June 03, 2006
KPMG RANKS EDMONTON AS TOP MAJOR CITY!
As you know, housing costs are quickly increasing in Edmonton, due in part to the number of people moving to the area. This study from KPMG shows Edmonton as the least expensive place in Western Canada to run a business.
This could mean more business will open up offices here, increasing the number of jobs and therefore the number of people relocating here and in a round about way could further increase the demand for housing...here is the article:
Edmonton has the lowest business costs of any major city (500,000-plus population) in Western Canada … and western North America, according to an independent report released by KPMG.Edmonton is second only to Saskatoon, Saskatchewan in comparison with 31 cities of all sizes evaluated in western North America. And Edmonton is second only to Quebec City, Quebec in comparison with 20 global cities with populations between 500,000 and one million.Business costs are expressed as an index, with the United States being assigned the baseline index of 100. An index less than 100 indicates lower costs than the U.S. Edmonton’s business cost index is 93.3 … just 3.2 points from the top-ranked Canadian city (Sherbrooke, Quebec).
All 17 business operations measured in Edmonton have low index ratings, ranging from clinical trials (85.9) to telecommunications (96.8). Eight of these business types in Edmonton —advanced software, telecom equipment, specialty chemicals, food processing, pharmaceuticals, medical devices, electronics assembly and shared services centres — are ranked among the top-10 globally for cost-effectiveness.
The 2006 Competitive Alternatives study measured 27 cost components — including labour, taxes, real estate and utilities — as applied to business operations in nine countries: Canada, France, Germany, Italy, Japan, the Netherlands, Singapore, the United Kingdom and the United States.
Business cost comparisons were provided for 95 cities in these countries based on start-up and operational costs for 17 types of businesses over a 10-year planning horizon.
As you know, housing costs are quickly increasing in Edmonton, due in part to the number of people moving to the area. This study from KPMG shows Edmonton as the least expensive place in Western Canada to run a business.
This could mean more business will open up offices here, increasing the number of jobs and therefore the number of people relocating here and in a round about way could further increase the demand for housing...here is the article:
Edmonton has the lowest business costs of any major city (500,000-plus population) in Western Canada … and western North America, according to an independent report released by KPMG.Edmonton is second only to Saskatoon, Saskatchewan in comparison with 31 cities of all sizes evaluated in western North America. And Edmonton is second only to Quebec City, Quebec in comparison with 20 global cities with populations between 500,000 and one million.Business costs are expressed as an index, with the United States being assigned the baseline index of 100. An index less than 100 indicates lower costs than the U.S. Edmonton’s business cost index is 93.3 … just 3.2 points from the top-ranked Canadian city (Sherbrooke, Quebec).
All 17 business operations measured in Edmonton have low index ratings, ranging from clinical trials (85.9) to telecommunications (96.8). Eight of these business types in Edmonton —advanced software, telecom equipment, specialty chemicals, food processing, pharmaceuticals, medical devices, electronics assembly and shared services centres — are ranked among the top-10 globally for cost-effectiveness.
The 2006 Competitive Alternatives study measured 27 cost components — including labour, taxes, real estate and utilities — as applied to business operations in nine countries: Canada, France, Germany, Italy, Japan, the Netherlands, Singapore, the United Kingdom and the United States.
Business cost comparisons were provided for 95 cities in these countries based on start-up and operational costs for 17 types of businesses over a 10-year planning horizon.
Monday, May 29, 2006
Housing market remains animated through April
Edmonton, May 2, 2006: The Edmonton Real Estate Board reports that the resale housing market remains animated. The booming economy and high demand are causing housing prices to rise beyond forecast expectations. In January EREB forecast that residential sales would remain at last years record levels but that prices would rise 8%. So far this year sales have risen 12.4% and prices are 18% ahead of the same time last year.
“This market is nothing like the 80’s boom,” said Madeline Sarafinchan, EREB President. “Prices are increasing steadily but housing is not overpriced. Mortgage rates remain low and consumer confidence is high.” She added that there is no increase in foreclosures and resale property retains its value because it is priced well below new construction.
Inventory levels for resale housing are lower than typical. The MLS® residential inventory at the end of April was 2,219 as compared to 4,810 last year. As a result sales are animated and buyers are forced to make decisions quickly when they see an attractive property.
Average days on market in April was just 23 days. Slightly slower than March (19 days) but still half of last year’s April figure of 46 days.
The average price* for single family dwellings rose 3.7% over March to $265,557. Condo prices were up 3.6% to $162,565. Average prices on duplexes and rowhouses finally topped $200,000 at $221,941 up from $193,000 last month.
The average residential price hit a new all time high of $226,846 in April (up 3.0% from the previous month).
Over 40% of single family homes on MLS® sold at or over the list price in April. “In the market today you need to have a sophisticated pricing and negotiation strategy,” said Sarafinchan. Last April less than 15% of sales met or exceeded the list price. “Solid, reliable information about recent sales and neighbourhood trends can only be obtained from your REALTOR® who has records of 91% of the residential sales in Edmonton.”
Complete Article @ http://www.ereb.com/marketactivity/April2006.html
Edmonton, May 2, 2006: The Edmonton Real Estate Board reports that the resale housing market remains animated. The booming economy and high demand are causing housing prices to rise beyond forecast expectations. In January EREB forecast that residential sales would remain at last years record levels but that prices would rise 8%. So far this year sales have risen 12.4% and prices are 18% ahead of the same time last year.
“This market is nothing like the 80’s boom,” said Madeline Sarafinchan, EREB President. “Prices are increasing steadily but housing is not overpriced. Mortgage rates remain low and consumer confidence is high.” She added that there is no increase in foreclosures and resale property retains its value because it is priced well below new construction.
Inventory levels for resale housing are lower than typical. The MLS® residential inventory at the end of April was 2,219 as compared to 4,810 last year. As a result sales are animated and buyers are forced to make decisions quickly when they see an attractive property.
Average days on market in April was just 23 days. Slightly slower than March (19 days) but still half of last year’s April figure of 46 days.
The average price* for single family dwellings rose 3.7% over March to $265,557. Condo prices were up 3.6% to $162,565. Average prices on duplexes and rowhouses finally topped $200,000 at $221,941 up from $193,000 last month.
The average residential price hit a new all time high of $226,846 in April (up 3.0% from the previous month).
Over 40% of single family homes on MLS® sold at or over the list price in April. “In the market today you need to have a sophisticated pricing and negotiation strategy,” said Sarafinchan. Last April less than 15% of sales met or exceeded the list price. “Solid, reliable information about recent sales and neighbourhood trends can only be obtained from your REALTOR® who has records of 91% of the residential sales in Edmonton.”
Complete Article @ http://www.ereb.com/marketactivity/April2006.html
GST cuts will impact both residential and commercial property sales.
Edmonton, May 4, 2006: The one per cent reduction in the GST announced in the federal budget will have an impact on commercial real estate transactions after July first.
“A reduction in the GST rate is also good news for anyone who buys or leases a commercial property,” says Mark Thiessen, the Winnipeg REALTOR® who is also Chair of the National Commercial Council of The Canadian Real Estate Association.
Keith Morrissey, Commercial Division Manager of the Edmonton Real Estate Board explains that when the GST was introduced, it immediately added seven per cent to the costs of occupancy of leased premises. “It also added seven per cent to the purchase price of commercial real estate, or value proportion thereof for commercial and residential mixed properties. This is extremely important to note for businesses that do not collect GST, as this is a direct cost.”
The federal budget announced that the one per cent reduction in the GST will take effect July 1. If the property is not transferred until after that date, a six per cent GST rate will apply.
Commercial REALTORS® were disappointed that the federal budget did not address the government’s election promise to introduce a rollover of capital gains tax on the sale of assets when the proceeds are reinvested within six months. “We appreciate that everything can’t be done in one budget,” said Morrissey. “We expected some assurances in the budget document that the government will deliver on this promise.”
“The Canadian Real Estate Association has conducted extensive research on the benefits of a rollover of capital gains tax to small-scale investment in real estate,” Thiessen added. “We look forward to working with the federal government on the design of a capital gains reinvestment plan that will provide broad economic benefits.”
Edmonton, May 4, 2006: The one per cent reduction in the GST announced in the federal budget will have an impact on commercial real estate transactions after July first.
“A reduction in the GST rate is also good news for anyone who buys or leases a commercial property,” says Mark Thiessen, the Winnipeg REALTOR® who is also Chair of the National Commercial Council of The Canadian Real Estate Association.
Keith Morrissey, Commercial Division Manager of the Edmonton Real Estate Board explains that when the GST was introduced, it immediately added seven per cent to the costs of occupancy of leased premises. “It also added seven per cent to the purchase price of commercial real estate, or value proportion thereof for commercial and residential mixed properties. This is extremely important to note for businesses that do not collect GST, as this is a direct cost.”
The federal budget announced that the one per cent reduction in the GST will take effect July 1. If the property is not transferred until after that date, a six per cent GST rate will apply.
Commercial REALTORS® were disappointed that the federal budget did not address the government’s election promise to introduce a rollover of capital gains tax on the sale of assets when the proceeds are reinvested within six months. “We appreciate that everything can’t be done in one budget,” said Morrissey. “We expected some assurances in the budget document that the government will deliver on this promise.”
“The Canadian Real Estate Association has conducted extensive research on the benefits of a rollover of capital gains tax to small-scale investment in real estate,” Thiessen added. “We look forward to working with the federal government on the design of a capital gains reinvestment plan that will provide broad economic benefits.”
Current Mortgage Rates
Rates Effective May 23, 2006 and subject to change.
With access to over 30 competing banks, trust and life insurance companies, Dave Trithart can find the right combination of mortgage features, options and rates to meet your needs. You’ll get the best mortgage rate possible for the type of mortgage that meets your needs.
MORTGAGE RATES
TERM / MARKET RATE* / BEST RATE†
6 month 6.10% 5.55%
1 year closed 6.25% 5.15%
2 year closed 6.35% 5.20%
3 year closed 6.45% 5.30%
4 year closed 6.55% 5.30%
5 year closed 6.75% 5.30%
6 year closed 6.55% 5.50%
7 year closed 7.15% 5.40%
10 year closed 7.35% 5.55%
Call today and ask about an Adjustable Rate Mortgage at a rate today of 4.85% !!!!
Bank Prime Lending Rate is currently 5.75%.
* Market rate is the posted rate offered by the majority of Canadian financial insitutions. E&OE† OAC. Certain conditions may apply. Rate subject to borrower, property qualification and can change without notice.
We'd like to thank Dave Trithart of Mortgage Intelligence for providing this update.
For more details please call him at (780) 440-9313
Rates Effective May 23, 2006 and subject to change.
With access to over 30 competing banks, trust and life insurance companies, Dave Trithart can find the right combination of mortgage features, options and rates to meet your needs. You’ll get the best mortgage rate possible for the type of mortgage that meets your needs.
MORTGAGE RATES
TERM / MARKET RATE* / BEST RATE†
6 month 6.10% 5.55%
1 year closed 6.25% 5.15%
2 year closed 6.35% 5.20%
3 year closed 6.45% 5.30%
4 year closed 6.55% 5.30%
5 year closed 6.75% 5.30%
6 year closed 6.55% 5.50%
7 year closed 7.15% 5.40%
10 year closed 7.35% 5.55%
Call today and ask about an Adjustable Rate Mortgage at a rate today of 4.85% !!!!
Bank Prime Lending Rate is currently 5.75%.
* Market rate is the posted rate offered by the majority of Canadian financial insitutions. E&OE† OAC. Certain conditions may apply. Rate subject to borrower, property qualification and can change without notice.
We'd like to thank Dave Trithart of Mortgage Intelligence for providing this update.
For more details please call him at (780) 440-9313
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